Mallinckrodt may use term loan, revolver drawings for Sucampo buy

By Sara Rosenberg

New York, Dec. 28 – Mallinckrodt plc plans on using a new secured term loan facility and/or cash on hand, and borrowings under its existing revolving credit facility to fund the acquisition of Sucampo Pharmaceuticals Inc., according to a news release.

Under the agreement, Sun Acquisition Co., a subsidiary of Mallinckrodt, will commence a cash tender offer to purchase all of the outstanding shares of Sucampo’s common stock for $18.00 per share. The total transaction value including anticipated payments in respect of Sucampo’s debt is about $1.2 billion.

Closing is subject to customary conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and the tender of a majority of the outstanding Sucampo shares.

Mallinckrodt is a U.K.-based specialty pharmaceutical company. Sucampo is a Rockville, Md.-based biopharmaceutical company.

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